Correlation Between Braille Energy and INTEL CDR

Can any of the company-specific risk be diversified away by investing in both Braille Energy and INTEL CDR at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Braille Energy and INTEL CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Braille Energy Systems and INTEL CDR, you can compare the effects of market volatilities on Braille Energy and INTEL CDR and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Braille Energy with a short position of INTEL CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Braille Energy and INTEL CDR.

Diversification Opportunities for Braille Energy and INTEL CDR

0.01

Correlation Coefficient

Braille Energy  INTEL CDR

Significant diversification

The 3 months correlation between Braille and INTEL is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Braille Energy Systems and INTEL CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTEL CDR and Braille Energy is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Braille Energy Systems are associated (or correlated) with INTEL CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTEL CDR has no effect on the direction of Braille Energy i.e., Braille Energy and INTEL CDR go up and down completely randomly.

Pair Corralation between Braille Energy and INTEL CDR

Assuming the 90 days horizon Braille Energy Systems is expected to under-perform the INTEL CDR. In addition to that, Braille Energy is 2.08 times more volatile than INTEL CDR. It trades about -0.05 of its total potential returns per unit of risk. INTEL CDR is currently generating about 0.01 per unit of volatility. If you would invest  1,223  in INTEL CDR on September 18, 2024 and sell it today you would earn a total of  1.00  from holding INTEL CDR or generate 0.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Braille Energy Systems  vs.  INTEL CDR

Braille Energy Systems

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Braille Energy Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

INTEL CDR

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in INTEL CDR are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, INTEL CDR is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Braille Energy and INTEL CDR

The main advantage of trading using opposite Braille Energy and INTEL CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braille Energy position performs unexpectedly, INTEL CDR can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in INTEL CDR will offset losses from the drop in INTEL CDR's long position.

The idea behind Braille Energy Systems and INTEL CDR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.